Board Members present: Sandra Bishop, Dorothy Anderson, Peter Bartel, Susie Smith, and Patrick Lanning.
Others Present: Randy Berggren, JoAnn Andersen, Tom Buckhouse, Terry Bequette, Ken Beeson, Cathy Bloom, Larry Billhartz, Ed Case, Marty Douglass, Kathy Gray, Cathy Hamilton, Eric Hiaasen, Dave Koksi, Garry Kunkel, Roseanna McArthur, Jim Maloney, Mark Oberle, Jim Origliosso, Scott Spettel, Dick Varner, Debra Wright, and Krista Hince of the EWEB staff; member of the community and Kim Kunkel, Minutes Recorder.
President Bishop called the Regular Board Meeting of the Eugene Water & Electric Board (EWEB) to order.
AGENDA CHECK
The agenda was approved, as submitted.
APPROVAL OF CONSENT CALENDAR
President Bishop noted that the Consent Calendar included the following items:
1. Minutes of the April 14, 2000, Board Planning Session and the July 5, 2000, Work Session and Regular Boar d Meeting, and the July 7, 2000, Work Session.
2. Appointment of Trustee for the Land Trust Grant with the McKenzie River Trust.
Easement Request
3. City of Eugene (COE) Easement Request.
4. U.S. West (QUEST) Easement Request.
Personal Services Contract
5. EA Engineering, Science and Technology--Endangered Species Act (ESA)--Electric Division
6. R.W. Beck--Telecommunications Phase 2 Business Planning--Electric Division
7. Trail Bridge Automated Discharge Control System (Job 19107)--Electric Division
8. Trail Bridge Ultrasonic Flowmeter (part of Job 19107)--Electric Division
10. Island Fence--Substation Maintenance--Electric Operations--Electric Division
11. SCT--Information Service--Corporate Services
12. Deferral of Pending Steam Fuels Charge Adjustment
Commissioner Smith requested that Item 7 be removed from the Consent Calendar.
Vice President Anderson moved, seconded by Commissioner Bartel, to approve the Consent Calendar, with the exception of Item 7. The motion passed unanimously.
CORRESPONDENCE
General Manager Randy Berggren reviewed draft agendas for the September 7 Work Session and Board Meeting.
Mr. Berggren reported that the annual EWEB picnic was a success.
The Board agreed to hold an additional Board Planning Session on September 20.
Mr. Berggren reviewed a proposed quote to include on the EWEB plaque in the new Wayne Morse Free Speech Plaza. The quote, by former City of Eugene Mayor J.D. Matlock (1907-1911) is, as follows: "In my mind, water is associated with health, and light with learning, and it is our aim that each child, however poor or obscure, shall have at the minimum of cost these two fundamentals of civilization." Mr. Berggren requested the Board's feedback regarding the quote.
ITEMS FROM BOARD MEMBERS
President Bishop reported on recent tours, by City officials and others, of the EWEB Headquarters site and Steam Utility.
President Bishop reported that she has been contacted by a constituent concerned about electrical lines impeding onto his property near the Leaburg substation.
PUBLIC INPUT
Kevin Hornbuckle, 375 Adams Street, spoke in support of EWEB staff's proposal to underground the electric lines on Adams Street. He asked that residents be given the opportunity to contribute to the cost of making connections to utility poles located at the front of their homes.
Mildred "Millie" White, 442 Adams Street, encouraged the Board to adopt the proposed Adams Street Undergrounding Agreement. She noted that the life-span of trees in the neighborhood has been shortened as the result of EWEB pruning the trees over the years.
Bob Graif, resident of a home at 4th Avenue and Adams Street, encouraged the Board to adopt the proposed Adams Street Undergrounding Agreement. He said conflicts over utilities in the Adams Street neighborhood have historically resulted in consequences to trees. He expressed concern regarding the element of the proposal which states that three poles will be replaced with three poles. He said a reduction in the total number of poles was preferable.
Commissioner Smith suggested that the agenda be reordered to address the Adams Street Undergrounding Agreement next. The Board expressed support for this suggestion.
UNDERGROUNDING ELECTRIC FACILITIES ON ADAMS STREET
Referring to a memorandum entitled Undergrounding Electric Facilities on Adams Street, EWEB Public Affairs Manager Marty Douglass and EWEB Electric Operations Manager Dave Koski presented an overview of the background, evolution, projected time frame and estimated cost of the proposed project, and issued to the Board a recommendation that it approve the undergrounding of overhead lines on Adams Street between West 3rd and West 6th Avenues, and that staff be an active (labor and dollars) participant with the City of Eugene in a tree replanting program in the general Whiteaker neighborhood, beginning with the next planting season.
The Board asked a number of clarifying questions regarding the proposed project.
Commissioner Bartel stressed the importance of preserving the "character" of older neighborhoods, such as Adams Street, by protecting trees when trees and electric wires are in conflict.
Vice President Anderson inquired as to whether there was an alternative to replacing three poles with three poles. Mr. Berggren clarified that three primary poles would be replaced with three secondary poles, which have fewer requirements in terms of tree trimming. He said staff would be willing to work with neighbors' concerns regarding the aesthetics of the poles.
Vice President Anderson moved, seconded by Commissioner Bartel, to approve the undergrounding of overhead lines on Adams Street between West 3rd and West 6th Avenues, and that staff be an active (labor and dollars) participant with the City of Eugene in a tree replanting program in the general Whiteaker neighborhood beginning with the next planting season; and that staff will assess the possibility of undergrounding directly to residents' homes. The motion passed unanimously.
TELECOMMUNICATIONS PROJECT PHASE II
Referring to a memorandum entitled EWEB Telecommunications Project Phase II Development Partner, copies of which were included in the meeting agenda packet, and a series of overhead displays, copies of which were distributed to the Board, EWEB Telecommunications Project Manager Ken Beeson and EWEB staff member Debra Wright presented an overview of the
Noting that the Request for Proposals (RFP) resulted in EWEB selecting SIGCORP Communications Services (SCS) as its Telecommunications Project Phase II Development Partner, Ms. Wright said the letter of understanding between EWEB and SCS states that:
Ms. Wright reviewed the Business Plan Development Process scope and schedule, as follows:
Ms. Wright reviewed the Business Plan Development Process cost estimate, as follows:
In response to a question from President Bishop, Mr. Beeson confirmed that due diligence was taken with regard to researching SIGCO's corporate "bloodline."
Vice President Anderson moved, seconded by Commissioner Bartel, to approve a resolution authorizing the General Manager to execute a letter of understanding with SCS for development of the Telecommunications Project Phase II and, further, to execute a service Agreement for completion of the Business and Financial Plan and initial System Design by December 1, 2000. The motion passed unanimously.
BONNEVILLE POWER ADMINISTRATION'S SUBSCRIPTION UPDATE
Referring to a memorandum entitled BPA Subscription Analysis Update, EWEB staff member Scott Spettel recalled that BPA announced earlier this year that it will limit the amount of "Slice" it will offer to sell. He said BPA committed to sell at least 1,150 aMW, calculated on an annual average basis, but stated that it will sell no more than 2,000 aMW as Slice. He said last week, BPA announced it will sell the upper limit, 2,000 aMW.
Mr. Spettel explained that because it appears certain that customer demand will exceed 2,000 aMW, BPA will allocate the Slice by proportionately reducing each customer's Slice request to make the total sold equal to 2,000 aMW. He said this approach was suggested by and supported by the majority of public power customers interested in Slice.
Mr. Spettel said EWEB expects actual demand for Slice will come in between 3,000 and 4,000 aMW, with a bias toward the higher end of the range. Therefore, each customer will receive between 66 percent and 50 percent of their requested aMW. Mr. Spettel said customers may only purchase Block power to bring their total BPA purchase up to their maximum entitlement. He said BPA does not allow customers to mix Slice and Requirements service.
Referring to a supplemental series of overhead displays, copies of which were distributed to the Board, Mr. Maloney presented a brief overview of
Mr. Spettel stated that at the September 19 Board Meeting, staff will present to the Board its final recommendation regarding the percentage of Slice "request" and Block to purchase, and will ask for the Board's approval of the contract.
Mr. Spettel said the final signed contract, approved by the Board, must be delivered to BPA by September 25, 2000. He explained that because the Slice contract is actually a combined Slice/Block contract, it is feasible for EWEB and BPA to be negotiating all the other points that need to be resolved, and then fill in EWEB's Slice request following the September 19 meeting.
Mr. Spettel said that on September 27, BPA will inform EWEB of its actual Slice allocation. If EWEB is allocated less than it requested, it has two weeks to adjust its Block purchase upward to reach its maximum entitlement.
ITEMS REMOVED FROM CONSENT CALENDAR
With regard to Item 7, Trail Bridge Automated Discharge Control System (Job 19107)--Electric Division, Commissioner Smith expressed concern that both bids were nearly twice the amount allocated for the contract. She requested information regarding the factors that may have contributed to the discrepancy. Larry Billhartz responded that the study on which the contract allocation was based may have been outdated. In addition, he said costs associated with the project may have been underestimated, and various budgetary assumptions may have been incorrect. Commissioner Smith said she was satisfied with the explanation.
Commissioner Smith moved, seconded by Commissioner Bartel, to approve Item 7 of the Consent Calendar, as presented. The motion passed unanimously.
The meeting adjourned at 9:35 p.m.
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Assistant Secretary President